Thursday, August 16, 2007

Don't Listen!

The media is making a big deal over the current stock market correction. A few thoughts.
  1. This drop is normal for the stock market. Three steps forward and two steps back.
  2. For every seller there is a buyer.
  3. The panic sellers are referred to as "weak hands" in the investment literature.
  4. Take a longer term view. The TSX Index drop so far is well within "normal limits". Check the previous drops on the chart. The DJIA Index is similar.
  5. If it wasn't the US Credit Crunch it would be some other excuse for the sell off.
  6. The "strong hands"...those who are buying now have the right idea.

I'm not checking the balances of my investment accounts. How about you?


S. B. said...

I am really amazingly calm this time. It seems like every downturn bothers me less and less, until I'm basically anesthetized to losses at this point...

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